Cleveland Fed President Loretta Mester said in a speech yesterday that she expected to see “an improvement in the second half of the year as the economy reopens”. However, “it will take quite some time for economic activity and job levels to approach more normal levels”. The improvements will also “vary across sectors”. Some industries like travel and leisure and hospitality will “take quite a while longer “.
By the end of 2020, the output level will see be about 6% below its level at the end of last year. Unemployment would be around (% while inflation will remain below the 2% goal “for some time to come”.
She added that it “makes sense” to continue to monitor the economy and to “to remember that there are several different scenarios that could play out, and to stand ready to use all of our tools to mitigate lasting damage and to support the economy’s recovery”
